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When does section 1031 apply to a qualifying exchange?

A transition rule in the new law provides that Section 1031 applies to a qualifying exchange of personal or intangible property if the taxpayer disposed of the exchanged property on or before December 31, 2017, or received replacement property on or before that date.

Can a 1031 exchange be used for a new property?

That said, a taxpayer may not have both the old and the new property titled in their name at the same time and qualify for a reverse exchange. A 1031 exchange occurs when an investor uses funds obtained through the sale of land is used to purchase new land.

What is a 1031 exchange?

A 1031 exchange occurs when an investor uses funds obtained through the sale of land is used to purchase new land. That said, there are rules and regulations that dictate the terms under which land can be sold. Knowing these can ensure that you qualify for the tax deferral. Would you like to receive weekly emails with our latest blog/properties?

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